Netflix

NFLX is undervalued

NASDAQ · Communication Services

FAIR PRICE

31.0%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$74.21

MARKET PRICE

$97.23

FAIR PRICE

$23.02

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

ZONE LIVE · APP ONLY

Where does the market buy NFLX?

17 investors have set their maximum buying price for NFLX. The community median and buy zone are live — in the Fair Price Index app.

COMMUNITY MEDIAN

▓▓▓▓▓

BUYERS AT TODAY'S PRICE

▓▓ %

METRICS

P/E22.6
P/B10.2
P/S6.4
PEG1.08
DIV YIELD
ROE47.9%
ROIC24.3%
DEBT/EQ0.47
MKT CAP$309B

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FPI RATING

9.1/ 10

Strong profitability and high-quality fundamentals across the board.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$77.78CONSERVATIVE ENTRY
$97.23FAIR PRICE
$74.21MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$77.78

Fair price × 0.80

DISTANCE

4.8%

Price to entry level

At the current price of $74.21, NFLX trades 4.8% below the conservative entry level of $77.78. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate NFLX's fair price

Netflix's fair price of $97.23 is derived from a blended model that combines DCF analysis (50%), relative valuation against Communication Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $74.21, NFLX trades 31.0% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting NFLX's risk profile.

RELATIVE · 30%

Comparing NFLX's valuation multiples against Communication Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for NFLX, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate NFLX's fair value with your own inputs.

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FAQ

What is the fair price of NFLX?+

Based on our blended model combining DCF analysis (50%), relative valuation against Communication Services peers (30%), and analyst consensus (20%), the fair price for Netflix is $97.23. At the current market price of $74.21, NFLX trades 31.0% below its calculated fair value.

Is NFLX overvalued or undervalued?+

Netflix is currently undervalued based on our valuation model. The stock trades at $74.21, which is 31.0% below the fair price of $97.23. The P/E ratio of 22.6x is a key metric in the valuation.

What is the margin of safety for NFLX?+

With a 20% margin of safety applied to the fair price of $97.23, the conservative entry level for NFLX is $77.78. At the current market price of $74.21, the stock trades 4.8% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is NFLX's fair price updated?+

We update fair price calculations for NFLX daily after market close. The current fair price of $97.23 incorporates the latest market data and sector multiples.

What factors affect NFLX's fair price calculation?+

NFLX's fair price of $97.23 is derived from DCF analysis (50% weight), relative valuation against Communication Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 22.6x, ROE of 47.9%.

Is NFLX a good buy right now?+

At $74.21, NFLX trades 31.0% below our fair value estimate of $97.23. The stock is currently undervalued. ROE stands at 47.9% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does NFLX pay dividends?+

NFLX does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.